We’re a month into 2019 and hopefully the tone has been set for a prosperous new year in your business. Experts are predicting many changes to the market for this year and understanding them will help your position in business.
- Costs will continue to rise. Remodeling costs in general will continue to rise as they did in 2018. An estimated 8-14% increase can lead to more stalled projects and tight margins. Be sure to position yourself accordingly in your project estimates.
- Home appreciation will flatten. This year, remodelers will need different evidence of remodeling ROI to counterbalance the lack of appreciation.
- Transparency will increase. Clients are more educated than ever and will insist on transparency during the sales and production process.
- Online meetings will continue to increase. To maintain client experience and satisfaction, being able to schedule online meetings will be key. This creates more opportunities for parties to discuss the project face to face.
- Amazon and Google will have a bigger impact. At one point, Home Depot was just a supplier. Now it is the largest remodeler. Amazon and Google have a large influence in the industry. Be conscious on how they fit in the equation and how they can be used to your advantage.
- Social media use will grow. Becoming more than just a marketing tool, social media will be part of everyone’s role in the business.
- The labor crisis will get worse. Learning to win with innovation instead of more employees will be key. Faster installations, friendlier work environments and more labor friendly products can help you achieve an ideal work place.
- Referral impact will decline. Consumers today are putting more value on an online review than a personal referral. Obtaining online reviews and making it easy for your clients to give them will be crucial.
- Project types will shift. Larger additions to homes will continue to decline as a higher percentage of remodeling dollars will be in bathrooms, kitchens, outdoor living, master suites and exterior makeovers. Position your messaging to fit those areas to succeed.
Predictions don’t always come true but preparing for them will do you no harm. The only thing constant in the remodeling business is change.
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